🇮🇩 Indonesia · 2026
Payroll Calculator
For employers: one employee's total monthly cost — salary, employer BPJS Ketenagakerjaan and Kesehatan, PPh 21 withholding — with net, gross or gross-up tax methods.
Tax year 2026Last reviewed 2 Oct 2026
What an employee really costs
Beyond salary, employers in Indonesia pay contributions to both BPJS agencies, and usually budget for THR and, eventually, severance. Monthly, the statutory on-costs are:
| Employer contribution | Rate | Cap |
|---|
| JHT | 3.7% | None |
| JP | 2% | Rp11,086,300 wage |
| JKK | 0.24% – 1.74% | None |
| JKM | 0.30% | None |
| BPJS Kesehatan | 4% | Rp12,000,000 wage |
For an office worker on more than Rp12 million a month that is roughly 7–8% on top of salary. Add one month's THR a year (about 8.3% of annual salary) and the full cost is usually around 16–17% above the contract salary.
Gross, net and gross-up
- Gross method — PPh 21 is deducted from the employee's pay. Most common.
- Net method — the company pays the employee's tax itself without showing it on the payslip. Simple for employees, but the tax paid is not a deductible expense for corporate tax.
- Gross-up method — the company adds a tax allowance (tunjangan PPh) equal to the tax, then withholds it. The employee's take-home matches the net method, and the allowance is deductible for the company. Because the allowance itself is taxable, it is found by iteration.
Employer compliance calendar
- Deposit PPh 21 by the 15th of the following month and file the monthly PPh 21 return in Coretax by the 20th.
- Pay BPJS Ketenagakerjaan by the 15th of the following month and BPJS Kesehatan by the 10th of each month.
- Give each employee an annual Form 1721-A1 by the end of January.
- Pay THR at least 7 days before each employee's religious holiday.
ESTIMATE ONLY
Shows an ordinary January–November month under TER. December, new joiners and leavers need a full-year calculation. Confirm with DJP and BPJS.
Frequently Asked Questions
How much does it cost to employ someone in Indonesia?+
On top of salary, employers pay about 3.7% JHT, 2% JP (capped), 0.24–1.74% JKK, 0.3% JKM and 4% BPJS Kesehatan (capped) — roughly 7–11% depending on salary and risk group — plus one month's THR a year.
What is the gross-up method for PPh 21?+
The employer pays a taxable tax allowance equal to the employee's PPh 21, then withholds the same amount. The employee keeps the same take-home as if the employer paid the tax, and the allowance is deductible for the company.
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